Technical analysis is one of the most powerful tools for crypto traders on Binance. By studying price charts, indicators, and market structure, traders can make smarter decisions without relying on rumors or hype.
This article explains a simple and effective technical analysis (TA) strategy that beginners and intermediate traders can use for daily trading.
๐ What Is Technical Analysis?
Technical analysis means analyzing:
Price action
Trading volume
Historical market data
The goal is to predict future price movement using charts and indicators.
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๐ ๏ธ Essential Indicators You Need
1๏ธโฃ Moving Averages (EMA 20 & EMA 50)
EMA 20 = Short-term trend
EMA 50 = Mid-term trend
Buy Signal: EMA 20 crosses above EMA 50
Sell Signal: EMA 20 crosses below EMA 50
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2๏ธโฃ Relative Strength Index (RSI)
RSI above 70 โ Overbought (possible pullback)
RSI below 30 โ Oversold (possible bounce)
Best Zone to Buy: RSI between 35โ45
Best Zone to Sell: RSI between 65โ75
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3๏ธโฃ Support & Resistance
Support: Price level where buyers enter
Resistance: Price level where sellers dominate
Always buy near support and sell near resistance.
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๐ฅ Simple Trading Strategy (Step-by-Step)
โ Timeframe: 15M / 1H
โ Market: Spot or Futures (low leverage)
๐ Buy Setup
Price above EMA 50
EMA 20 crosses upward
RSI between 40โ55
Price near support
๐ Sell Setup
Price below EMA 50
EMA 20 crosses downward
RSI between 60โ75
Price near resistance
